Imagine if suddenly the $100 bill just went away.
The strong central government in India wants to crush the free untaxed “black market” economy and has thrown the lives of many everyday people into chaos.
There is a reason why many people seek to buy gold in India when they can.
(From the Guardian)
Queues of angry, panicked Indians wound around bank buildings in Mumbai, the financial capital, on Thursday morning, two days after the prime minister, Narendra Modi, announced that 500- and 1,000-rupee notes, worth around £6 and £12, would be taken out of circulation.
In a televised announcement on Tuesday night, Modi had urged Indians not to rush to banks, as they would have until the end of 2016 to deposit cash in their accounts. But with the high-value notes withdrawn from Wednesday in an effort to combat corruption, black-market trade and tax evasion, many were left without cash for day-to-day expenses.
Banks were closed on Wednesday, and reopened on Thursday morning with a cap on cash withdrawals. ATMs remained closed, so currency was only available from the banks. Newspapers around the country reported long queues at branches, as people scrambled to exchange their high-value banknotes for 100-rupee bills.